An almost-5,000sqm parcel of favourably-zoned commercial land within Auckland’s city fringe boundaries has come to the market at a time when buyers are increasingly faced with a squeeze on centrally-located property options with scale and upside.
The 4,956sqm (more or less) freehold landholding at 66A,B and C Stoddard Road, Mt Roskill currently supports three industrial warehousing units and yard, with sitting tenants on flexible lease arrangements providing holding income.
The site offers an opportunity for investors to add value, develop or landbank, or for a well-resourced owner-occupier to leverage off the profile and location to strengthen its business position.
Tony Chaudhary and Janak Darji, Bayleys Manukau and Mark Preston, Bayleys Auckland Central, are marketing the property for their vendor client who has owned the site for some 11 years.
It will be sold via a tender process closing 12pm Monday, 12th July, unless sold prior.
Chaudhary said the existing buildings on the land have a combined total floor area of around 2,725sqm and are clearly in need of some deferred maintenance and upgrading.
“However, the property works well in this form for the tenants that are currently on-site, and there is an understanding with the vendor that suits all parties.
“There is an acknowledgment that, with new ownership, things could change,” he said.
“A landbanker may well simply opt to continue business as usual on the property while letting the landholding appreciate further, while an owner-occupier could tailor the property for its specific needs.
“Alternatively, a proactive developer could unlock the real value of the offering through clever redevelopment to cater to the burgeoning demand for commercial and industrial space in the Auckland region.”
The land is zoned Business-General Business, a classification which broadly allows for light industrial use, large format retail or trade supplier-related activity but which with due diligence, could also extend to other commercial activity.
The property is currently returning combined holding income of approximately $134,000 per annum plus GST and outgoings.
Chaudhary emphasised the scarcity of parcels of land like this within Auckland’s traditional city and city-fringe boundaries.
“Finding chunks of land with broad commercial-light industrial zoning close to central Auckland is like the proverbial hens’ teeth,” he said.
“Land of this scale in Drury or Hobsonville may be no big deal, but it’s a different story for suburbs like Mt Roskill.
“There’s certainly not a similar opportunity currently for sale that I’m aware of.”
The property is neighboured by light industrial and trade-related occupiers, and borders a residential catchment.
The land has access off Stoddard Road via a long driveway, with a grassed buffer zone between the property and the motorway, said Darji.
“While the property does not have frontage to Stoddard Road itself, it has expansive profile to the southwestern motorway, which provides priceless branding potential.
“State Highway 20 and the Waterview tunnel run parallel to the site providing streamlined access to the airport and western suburbs, with links to the Auckland CBD via Dominion Road.”